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Faster-than-Expected Data Center Load Growth May Cause Increased Regional Short-term Fossil Fuel Generation and Wholesale Electricity Prices

LCG, March 18, 2026--The EIA released a new "In-depth Analysis" of the potential impact of faster-than-expected near-term growth in data center power demand on power generation and wholesale prices on March 12. The analysis models the lower 48 states through 2027 and compares results to its base case scenario. Key takeaway from this sensitivity analysis is the potential increase in fossil fuels in some regions and potentially a significant increase in wholesale prices in ERCOT.

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Faster-than-Expected Data Center Load Growth May Cause Increased Regional Short-term Fossil Fuel Generation and Wholesale Electricity Prices

LCG, March 18, 2026--The EIA released a new "In-depth Analysis" of the potential impact of faster-than-expected near-term growth in data center power demand on power generation and wholesale prices on March 12. The analysis models the lower 48 states through 2027 and compares results to its base case scenario. Key takeaway from this sensitivity analysis is the potential increase in fossil fuels in some regions and potentially a significant increase in wholesale prices in ERCOT.

Read more

Industry News

CA ISO Wants District Court to Dismiss FERC's Governance Suit

LCG, September 17, 2002-The California Independent System Operator has asked a U.S. District Court to dismiss a lawsuit brought against it by FERC regarding replacing ISO board members.

As a part of the continuing difference of opinion over energy market control between sederal and state agencies, the Federal Energy Regulatory Commission sued the California Independent System Operator August 16 after the ISO board neglected to replace itself or file relevant information with FERC by FERC's deadline of August 15.

The ISO and the governor, as well as California Attorney General Bill Lockyer, find the FERC order to be an inappropriate "power grab" by FERC, and the ISO now says that the U.S. District Court of the District of Columbia has not been shown to have jurisdiction in the case.

On Friday the ISO requested that the federal court drop FERC's lawsuit.

Governor Gray Davis appointed its five members to the California ISO board in January of last year. The ISO is responsible for reliability of electricity transmission in California.
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